Now Unilever bosses get their bonus trimmed

UNILEVER has unveiled a shake-up of executive pay as the marmite maker launches a cost-cutting review.

The Anglo-Dutch consumer goods giant, behind brands such as Dove soap and Colman’s mustard, saw off a £115bn bid by US rival Kraft Heinz earlier this month.

But it sparked calls for Unilever to boost returns to shareholders, triggering a review to stave off another takeover bid.

Last night Unilever published its annual report, which detailed a change in the way it rewards its top 500 bosses.

Their pay will be more closely aligned with how much cash the company doles out to shareholders – a key part of the review Unilever is conducting, which will be finished in April. managers will also be encouraged to buy more shares in the business. The company said it wanted managers to have an even stronger personal commitment to Unilever share ownership. It is understood there will be no change to their total pay, provided managers invest 60pc of their bonus back into the company. The decision to change executive pay came after talks with shareholders over the last year.

In the same year, Paul Polman, chief executive, saw his total pay fall from £8.8m in 2015 to £7.2m as he received fewer long- term incentive rewards. His basic salary was also trimmed by 11pc to £1m.

Under the new pay scheme Polman, 60, will be required to ensure his stake in the company is five times his basic salary, rather than four previously.

The announcement follows speculation Polman is under pressure to sell off parts of the business, cut jobs and keep a closer eye on budgets after the offer from Kraft. The deal would have been the second biggest takeover in history – and would have brought Unilever under the ownership of an aggressive cost-cutter.